Sep 18, 2024

Question of the Day: What percentage of new vehicle transactions involve leasing instead of buying?

Is leasing steering the trend for new cars, or is purchasing still in the fast lane?

Answer: 25.35%. That's 1 out of every 4 transactions!

Questions:

  • Can you explain the difference between buying a new car and leasing one?
  • Why do you think consumers are increasingly relying on leases?
  • Do you think a leased car is a good financial decision?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Experian):

Over the last 3 years, the average amount of money financed for a car has remained relatively steady at around $41,000, but the interest rate has jumped from 4.61% to 6.84%. This has caused the average monthly payment to increase from $672 to $734 from 2022 to 2024. Over the same time period, monthly payments for leases have remained stable in the mid-$500 range.

 

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Want to learn more about the process of Buying a Car? Check out the Buying a Car mini-unit.

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Check out 2 brand new On Demand Modules!

About the Author

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.

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